HomeMy WebLinkAbout1988-001-01/05/1988-ESTABLISHING FUND PROGRAM SELF INSURANCE RESOLUTION 88-1
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ESTABLISHING A SELF-INSURANCE PROGRAM
AND A SELF-INSURANCE FUND
WHEREAS, by Resolution 87-79, the Council of the City of Fort Collins
has assumed legal liability, to the extent authorized by law, for payment
of certain defense costs, judgments and settlements of claims which are the
subject of pending civil actions filed against its present or former public
employees; and
WHEREAS, the Council desires to establish a program of self-insurance
to also provide for (1) the settlement and payment of civil claims against
the City and/or its employees which are not the subject of pending
litigation, and (2) the replacement or repair of damaged or stolen City
property.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1 . Creation and Purpose of Self-Insurance Program.
a. There is hereby authorized and created a self-insurance
program (the "Program") for the City of Fort Collins.
b. The purpose of the Program is to provide a uniform and
centralized self-insurance system that will provide coverage
and payment, within the monetary limits established in
Section 2 below, for the following "covered expenses" :
(1) Costs, fees, judgments and claims paid in connection
with those certain civil actions filed against
employees of the City in state or federal court, which
actions are more particularly described in Resolution
87-79, dated June 2, 1987.
(2) Costs, damages and/or expenses incurred in the payment
of other civil claims filed against the City and/or its
employees [as defined in Section 24-10-103(4) , C.R.S.] ,
whether or not such claims are the subject of formal
court proceedings; provided, however, that such claims
are, in the judgment of the Director of Purchasing and
Risk Management (the "Director") , meritorious claims
for which the City may be legally liable.
(3) Costs and expenses incurred by the City for the repair
or replacement of City property, real or personal ,
which costs are sustained by reason of the theft of or
damage to said property, excluding normal wear and
tear.
(4) Insurance premiums.
(5) Such costs of administering the Program as are deemed
reasonable and necessary by the Director.
C. For the purposes of this resolution and Resolution 87-79,
any member of a board or commission appointed by the City
and subject to removal by the City shall be considered an
"authorized volunteer" and "public employee" within the
meaning of Section 24-10-103(4) C.R.S. , whether or not such
board or commission is itself under the control of the City.
d. The establishment of the Program shall not be construed so
as to expand in any way the City's legal liability to third
party claimants, whether under the provisions of the
Colorado Governmental Immunity Act, Section 24-10-101, et
seq. , C.R.S. , or otherwise.
Section 2. Funding of the Program. The Program shall be funded by
monies appropriated for expenditure from a Self-Insurance Fund (the
"Fund") , which is hereby created.
a. Expenditures from the Fund for covered expenses shall not
exceed: (1) One Hundred Fifty Thousand Dollars ($150,000. )
to any one person for claims arising out of a single
incident or occurrence; or (2) Four Hundred Thousand Dollars
($400,000.) in total payment to all persons for claims
arising out of a single incident or occurrence.
b. Notwithstanding the foregoing, funds authorized for
expenditure by the Director shall in no event exceed the
uninsured portion of any covered expense.
C. The limits contained herein are intended only to limit
amounts to be expended from the Fund and are not intended to
preclude supplemental appropriations, if necessary, to fully
satisfy the City's assumption of liability on behalf of
employees as described in Resolution 87-79, referred to
above.
Section 3. Implementation and Administration.
a. The Director shall be responsible for implementation and
administration of the Program, including the settlement of
claims. The Director is authorized to promulgate rules for
the proper daily management, operation and maintenance of
the program, and is further authorized to enter into a
professional services agreement pursuant to relevant
provisions of City Code for the administration of claims.
b. The Director shall authorize expenditures for the purposes
described in Section 1 above and shall maintain such
accounting records pertaining to each such transaction as
may be aeemed necessary by the Financial Officer. Covered
expenses shall be paid on an occurrence basis.
C. The costs of covered expenses paid out of the Fund shall be
allocated among the various departments of the City, and the
departments charged therefor, according to the Director' s
assessment of each department's liability exposure. Factors
to be considered by the Director shall include each
department's payroll , revenue, value of property utilized
and previous loss history.
Section 4. Enforceability. The provisions of this Resolution shall
constitute a separate agreement between the City and each covered employee
of the City, as defined in Section 1(b) (2) above, so that each such
employee shall be entitled to enforce said provisions to the extent
permitted by law.
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins held this 5th day of January, A.D. 1988.
Ma
ATTEST:
City Clerk